Black Economic Excellence: Exploring The Legacy And Power Of Black Cooperatives

Library of Congress / Contributor / Getty Images August is National Black Business Month, and ESSENCE is celebrating Black economic excellence and taking a look at the important history of Black cooperatives. According to data from the last census, “there were 3.12 million Black-owned businesses in the United States, generating $206 billion in annual revenue and supporting 3.56 million U.S. jobs.” Inspiringly, “Black women are the fastest-growing group of entrepreneurs,” yet they receive less than 1% of funding from venture capitalists. But “Black entrepreneurship is an important tool for closing the racial wealth gap, as it supports direct wealth creation, expands Black employment, and keeps local money circulating locally,” per a report from Brookings Institution. “Unfortunately, Black businesses have a higher failure rate than other businesses due to systemic barriers.” One tool Black Americans have used to fight these systemic barriers has been cooperatives. According to the U.S. Department of Agriculture, “A cooperative is defined as a user-owned and controlled business from which benefits are derived and distributed equitably on the basis of use or as a business owned and controlled by the people who use its services.” One of the first examples of a Black cooperative can be traced...